Stephen Johnson Field

“ The bad faith in the taker of negotiable paper which will defeat a recovery by him must be something more than a failure to inquire into the consideration upon which it is made or accepted, because of rumors or general reputation as to the bad character of the maker or drawer. ”

“ If the drafts should be paid, the drawees were to take the goods. To hold such indorsement to be a warranty would create great embarrassment in the use of bills of lading as collateral to commercial paper against which they are drawn.
The bank, after discounting the drafts, stood towards the acceptors in the position of an original lender, and could not be affected in its claim by the want of a consideration from the drawer for the acceptance, or by the failure of such consideration. ”

“ The firm answered by telegram, stating the market price of light hides on that day, and that they would pay a draft 'for two-thirds value, bill of lading attached.' On the same day the firm sent a letter to Du Bois, repeating the message, and adding that if the hides were in good condition, and No. 1, they could sell them readily; that their commission was 2 1/2 per cent.; and that they would sell all hides that he might ship to the market at Milwaukee. ”

“ Evidence of declarations of an agent as to past transactions of his principal are inadmissible, as mere hearsay. Luby v. Hudson R. R. Co., 17 N. Y. 133; Adams v. Hannibal & St. J. R. Co., 74 Mo. 553.
3. The testimony of the president of the bank, explanatory of the conduct of its officers when certain drafts came back protested, was admissible. The witness had testified, upon examination by the plaintiffs, that the bank never had any knowledge of a forged bill of lading by Du Bois until October 31, 1881 ”

“ We see nothing in the other exceptions which requires notice. Judgment affirmed.
Notes
This work is in the public domain in the United States because it is a work of the United States federal government (see 17 U.S.C. 105) . ”